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City of Dresden Faces Financial Strain due to Rising Costs of Accommodating Asylum Seekers

The rising costs of accommodating asylum seekers are causing the city of Dresden increasingly financial difficulties. According to the town hall, an additional 82 million euros are needed to handle all tasks.

However, the state capital does not have to cover this amount alone because it also receives transfers from the state. The city administration announced today that they will cover up to 46.8 million euros from their own resources in the new year.

City costs are rising because Dresden has to accommodate more refugees than expected. At the same time, the prices for energy and materials have also risen.

In 2023, the Saxony State Directorate assigned 2,125 asylum seekers to the city. For the year 2024, 2,200 people are expected to be assigned. For comparison: In 2022, Dresden had to accept 1,549 asylum seekers, of which 1,085 people were in the fourth quarter of 2022. This corresponds to a 37 percent increase in the number of refugees to be accommodated in 2023. According to the city, this development was not yet foreseeable when budget planning in 2022.

In addition, rents, heating, energy and equipment in asylum accommodation have become more expensive. Accommodation costs are rising mainly because there are hardly any affordable and suitable properties left in the city. As in 2023, more money will be required in 2024 than originally planned.

2024-01-05 17:01:08
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